David Desharnais: So on the — yeah. Sure. So on the deployments with weather concerns, it’s not just the weather event itself. It’s the inability to get out there in preparation for the weather and then if there is a weather event, it’s the cleanup afterwards. So it’s really the — it’s not the event itself. It’s all the stuff that the threat of the event that slows things down because you can’t put crews out there. Second of all, and in the nature of some of the work that we do, even rain — heavy rain can make an impact and so you don’t send crews out in the dangerous kind of weather like that. So it’s episodic and it’s something that we dealt with, certainly, in the hurricane season in the southeast. So we’ll come back to that if you have additional questions.
In terms of deployments across the 14, these are in different stages right now. And partially as we’re moving crews westward and trying to schedule them with the existing work that we’re doing in the southeast becomes a race condition, right? And so it’s really just a matter of scheduling right now. And so those are progressing well and we have two that are in process right now and will continue to schedule as quickly as we can for the rest as we look to add crew members, as well as expand our footprint westward.
Zach Cummins: Understood. And then final question for me. It seems like the real gating factor here is just the ability to have crews to implement some of these deployments and really do that at a pretty quick pace. How are you thinking about options? I know, Robert, you’ve mentioned pursuing some sort of debt financing to potentially fast track some of this. So I’m just curious of how you’re thinking about potential solutions to really fast track some of these deployments.
Robert Berman: Yeah. Good question, Zach. So, as we approach break even here, the majority of the capital that Rekor will need will be for the implementation of these systems. And the most efficient way to do that is with debt and we’ve been working for months on creating a structure that can be stamped and repeated with regard to being able to fund those systems. The good news is if you think about the counterparty, it’s a state with good credit, long-term contracts, highly profitable. So we think we have an answer to that and we’re hoping to be able to talk more about that in this quarter. But we think we have no guarantees, but we think we have that problem solved and if we solve that problem, then that’s just an accelerant for the company’s growth and that’s the most efficient way to fund that and today we’ve been funding a lot of these deployments with equity, which is terribly inefficient. So that’s how we’re thinking about it going forward.
Zach Cummins: Understood. Well, thanks for taking my questions and best of luck with the rest of the year.
Robert Berman: Yeah. Yeah. Thank you, Zach.
David Desharnais: Thanks, Zach.
Operator: [Operator Instructions] The next question comes from the line of KC Ambrecht with Shay Capital. Please proceed with your question.
KC Ambrecht: Hi. Thank you very much for taking the questions. Really good to see the growth accelerator. Just a couple ones on the state contracts. How should we think about the cadence of these contracts? Are they rolling up a bunch of cities and municipalities or can we think about actually landing some large actual state contracts and then across — rolling your footprint out across that region?
Robert Berman: Well, that’s a good question, KC. So, there’s multiple pieces of this business, but the states are required to do this data collection, as are other municipalities like counties and towns, villages, cities and so forth. These state contracts are typically done with one or two vendors the way they’ve been done with legacy technology for years. So this is changing because we’re changing the way they do it with the technology they do it. So these contracts are fairly large. And that was the reason we acquired SDS, because SDS had pioneered the concept of installing using legacy technology, these systems under a different model that you would typically see, which is just a contractor deploying equipment with some type of maintenance contract.
Where this is here now pay for data. So I think you’re going to see some significant contracts with states. But there’s a whole other side of this business, which we’re attacking right now, which is at the more local level and that’s probably equal in size to that happens at the state level. So I think it’s going to be a combination of both. But I think you’ll see some really…
KC Ambrecht: Okay.
Robert Berman: … significant state contracts. We already have. I mean, we already have some pretty significant state contracts. So I think…
KC Ambrecht: Right. In terms of — Robert, in terms of like these large state contracts, like, what’s the — is there like a K like a duration? Are they five-year contracts for X million? Like, how do we think about kind of the…
